Should you buy or lease a new vehicle? Well, that’ll depend on your personal circumstances. Here are some pros and cons of both options to consider.

Why buy a car, outright? Well, you’ll own it. You won’t have to “give it back.” When you own your own vehicle you can do whatever you want to it, such as put a giant sticker on the hood or paint your rims whatever color you want them to be. Generally, insurance premiums are typically lower than if you lease, so there’s that benefit. Finally, you can put as much mileage on it without having to worry about having to “pay extra if you go over” and such.

One of the drawbacks to buying a car, though, is the cost, which can be, understandably, higher than leasing the vehicle. Out of pocket expenses add up. Some people choose to pay the whole price at once, while others decide to make monthly payments to pay it off, much like a house mortgage.

With leasing, overall costs can be lower– for instance, a lease probably won’t require a down payment, won’t have an upfront sales tax charge, and may offer tax advantages if used for business purposes. Furthermore, monthly payments for a lease are usually less compared to owning it, and with leasing, you’re pretty much renting the vehicle for a set period of time. Therefore, you give it back when you’re done. The advantage here is that you don’t have to assume the full depreciation cost of the vehicle– you’re not stuck with it when it’s no longer brand new and worth “more money.” Giving it back means you can start fresh, again, with a newer model. Many people like to lease for that very reason– it’s like getting a new car every couple years for a reasonable price, a new vehicle which looks and feels nice.

Perhaps the biggest drawback to leasing is that you’re paying monthly for it but you never actually own it. It’s never truly “yours.” Furthermore, there’s typically a mileage restriction. Most are 12,000 to 15,000 miles allowed per year, and when you go over that amount, expect to pay quite a bit for that privilege. Oh, and insurance costs for leased vehicles can be kind of high.

In some cases, people may choose to purchase the car at the end of the lease period for a predetermined amount.